Insurance carriers for CA home under a land trust

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Insurance carriers for CA home under a land trust

Anthony Tran
Member since 2022 · 14 posts · 1 vote

Hello all,

I have moved my rental property to a land trust. My insurance company underwriter canceled my policy for not seeing my name in the grant deed. The deed only shows my land trust name and my lawyer as the trustee. I have provided a certificate of trust showing that I am the trustee, but the underwriter doesn't accept it. Under this condition, is there any insurance carriers out there willing to insured my properties?

Regards,

Anthony

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  • Hossein Sharifi
    Investor · Member since 2023 · 121 posts · 58 votes
    1w

    Common issue. Ask for a landlord (DP-3) policy written with the trust as named insured and you plus the trustee as additional insureds. An independent broker who places with surplus-lines carriers will usually get this done faster than a captive agent. Also send the full trust agreement, not just the certificate.

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    • Anthony Tran
      OP
      Member since 2022 · 14 posts · 1 vote
      1w

      Hi Sharifi,

      I have shopped around with many carriers. I have not able to find one that allows this structure. Do you have a recommended list?

      Anthony

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1w

    Anthony, I’d probably go directly to the carrier’s underwriting department rather than relying only on the local agent at this point. Since the deed shows the land trust and your attorney is the trustee, I’d ask the insurer exactly what documentation they need to verify the ownership and insured interest. The certificate of trust may not be enough for that particular carrier’s underwriting requirements.

    I’d also ask whether they can insure the property with the trust as the owner and properly list you and/or the trustee in the appropriate capacity on the policy. Different carriers can have very different underwriting requirements for trust-owned property.
    I’d get their requirements in writing before moving the property to another carrier, and I’d also have your attorney confirm that the insurance setup matches how the trust is actually structured.
    Hopefully another California investor who has a rental held in a land trust can point you toward a carrier that is familiar with this setup.
    Happy to connect!

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